In a significant development for the cryptocurrency industry, Su Zhu, co-founder of the failed hedge fund Three Arrows Capital (3AC), was arrested at Changi Airport in Singapore while attempting to leave the country.
Zhu’s arrest led to a subsequent court order sentencing him to four months in prison, as confirmed by 3AC’s joint liquidator, Teneo.
Three Arrows Capital Co-Founder Apprehended According to reports, While Zhu now serves his prison term, the liquidators will actively engage with him to address matters concerning Three Arrows Capital.
Their primary focus will be on recovering assets belonging to 3AC or acquired using the fund’s resources. The liquidators seek to maximize returns for the hedge fund’s creditors and will initiate further court proceedings as necessary.
The arrest and subsequent sentencing of Zhu follow the earlier granting of a committal order on September 25. This order was obtained due to Zhu’s intentional non-compliance with a court directive that required his cooperation with the liquidators’ investigations.
Specifically, Zhu was obligated to provide a detailed account of his activities as a co-founder of 3AC and its former investment manager.
A similar committal order was also issued against Kyle Davies, the other co-founder of Three Arrows Capital. However, Davies’ current whereabouts remain unknown, according to Teneo.
The liquidators have consistently prioritized the recovery of 3AC’s assets and maximized returns for its creditors throughout the process. Their efforts focus on retrieving 3AC’s property and assets acquired using the fund’s funds.
Lastly, Teneo emphasized that they will continue to work diligently towards these objectives, potentially seeking additional court orders to facilitate the process.
The total crypto market cap has recovered the $1.05 trillion mark on the daily chart. Source: TOTAL on TradingView.com Featured image from Shutterstock, chart from TradingView.com
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Ronaldo Marquez Ronaldo is a seasoned crypto enthusiast with over four years of experience in the field. He is passionate about exploring the vast and dynamic world of decentralized finance (DeFi) and its practical applications for achieving economic sovereignty. Ronaldo is constantly seeking to expand his knowledge and expertise in the DeFi space, as he believes it holds tremendous potential for transforming the traditional financial landscape.